Abstract
Artificial Intelligence (AI) and particularly generative AI (genAI) is a general-purpose technology with the potential to reshape economies and societies, through its effects on productivity, labor markets, and production structures. Unlike previous technologies, AI extends automation beyond physical and routine tasks to cognitive, linguistic, and decision-making functions. White-collar tasks face growing displacement pressure as capabilities expand into language and reasoning. Value creation is increasingly concentrated in intangible assets - software, research and development (R&D) and organizational capital - as reflected in their rising share of business investment and firm valuations across advanced economies. Depending on the pace and extent of AI diffusion, these effects can translate into economy-wide implications for growth, jobs, inequality, and structural transformation.